Palm Beach Property Market Update 1st Half of 2022
In Q4 2021, Palm Beach recorded a median house price of 1,700,000 and a median unit price of $840,000. This represents annual (Q4 2020 –Q4 2021 median price growth of 50.8% for houses and 15.2% for units. Between Q4 2020 – Q4 2021 total sales in both markets slowed, by -12.1% for houses (to 51 sales) and by -36.8% for units (to 96 sales). Current occupiers and down-sizers can benefit from real returns on capital investment, as median price growth has been fuelled by an imbalance in high demand and low supply levels. The market is undersupplied, in need for ready-to-sell new stock.
Average vendor discounts between Q4 2020 and Q4 2021 have become relatively stable for houses at -0.6% and travelled to a higher premium of 1.0% for units. Market conditions have shifted towards sellers, where buyers offer closer or above the first list price.
In December 2021, house rental yields in Palm Beach were recorded at 2.8%. House rental yield has declined in the past 12 months due to median house sale price growth, of 50.8%, outpacing median house rental price growth, of 24.8%. That said Q4 2021 median house rental price reached $880 per week, with a low average day on the market of 18 days. This indicates a strong and resilient rental market.
2+ bedroom houses have provided investors with +19.2% rental growth annually, with a median rent of $620 per week.
Also in December 2021, Palm Beach recorded a vacancy rate of 0.4%, below that of Gold Coast LGA (0.6%) and well below Brisbane Metro (1.3%). Vacancy rates in Palm Beach remain within 0.5% mark in the past 12 months and well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even amidst COVID-19 conditions. This confirms there is still a healthy rental demand and investors can be confident of a conducive investment environment in Palm Beach.
